Stellar VS Ripple: Which Crypto Payment Network is Better?

In this article, we will compare the two cryptocurrencies and see which one is worth investing in.

Stellar is a cryptocurrency that aims to be the world’s payment network. It uses blockchain technology and has a market cap of $3.6 billion. Ripple, on the other hand, focuses on providing financial solutions for banks. Read more in detail here: should i buy ripple or stellar.

In this post, we’ll compare and contrast two of the most powerful competitors in the payments space: Stellar and Ripple.

As of 2019, the crypto industry has produced a few businesses backed by significant money and experienced technologists. Ventures that concentrate on a particular niche that needs to be serviced, rather than all-purpose cryptocurrencies (like the ol’ Bitcoin), are gaining traction and momentum in that order of concepts.

It’s worth noting that some of the newest crypto businesses include more than simply crypto/blockchain technology. Simply stated, they create and provide a service, usually financial, that makes use of blockchain technology or other crypto technologies, frequently simply for the sake of the buzz rather than a legitimate need to do so.

But let’s go back to the point. Right, before we go into Stellar vs. Ripple, let’s take a closer look at each and see what makes them similar and different.

  • Stellar is an open-source protocol that allows for the conversion of digital assets to fiat money, enabling for multi-currency global transfers and remittances. The Stellar Development Foundation, a non-profit organization, maintains the protocol. To conduct transactions inside the Stellar network, a cryptocurrency called Lumens (XLM) is used. A list of the best wallets to keep your XLM can be found here.

Stellar’s business arm,, is actively pursuing commercial acceptance and implementation of the Stellar technology. It’s worth noting that Jed McCaleb, who co-founded Ripple, is also the creator of Stellar.

  • Ripple is a real-time gross settlement platform that also offers currency exchange and remittance services. It is owned and developed by Ripple Labs, a corporation based in the United States. “Secure, fast, and virtually free worldwide financial transactions of any size with no chargebacks,” says Ripple.

Ripple’s native cryptocurrency, XRP, is one of the top five in terms of market capitalization. Furthermore, it has experienced increasing acceptance by financial institutions and plans to continue doing so in the near future.

Which is superior, Stellar or Ripple?

Both systems have their own cryptocurrency, which is owned by seed investors, private investors, and regular users. They’re also freely exchanged on cryptocurrency exchanges and utilized as a kind of value storage or speculative investment. So, in terms of token value and exchangeability, XLM and XRP are quite comparable, given that their value floats and swings based on market circumstances.

A brief look at the XRP vs. XLM pricing chart…


Stellar VS Ripple: Which Crypto Payment Network is Better?


Stellar VS Ripple: Which Crypto Payment Network is Better?


Both XLM and XRP are subject to the same swings as other big crypto markets; although they may outperform the crypto giant, Bitcoin, at times, they are still intertwined and act like other major crypto markets. As a result, the Stellar vs. Ripple dispute cannot be resolved only on the basis of market/price charts.

XLM, Stellar’s cryptocurrency, is identical to XRP in terms of technology and function. This is a foregone conclusion given that they share a founder and seek to make cross-border money transfers simpler and less expensive. But, unfortunately, the difference is in their target: Ripple is targeted at banks and financial institutions, while Stellar is focused at ordinary people and the unbanked, despite the fact that it may still be utilized by banks.

So, should I put my money into XRP or XLM?

It all comes down to personal preference: which image resonates with you the most? Both initiatives do, however, raise an interesting issue. Is it possible for both businesses to coexist? Is it necessary for one to put the other out of business? 

Both cryptocurrencies are so similar that it’s easy to think that just one is required. Nonetheless, the most noticeable distinction is their intended audience: XRP is aimed at banks and financial institutions, while XLM is aimed at the unbanked and those in need of improved access.

Financially, XRP has grown in popularity, and its market is where the money is. XLM, on the other hand, relies on increasing user traction to stay afloat. Furthermore, XRP is a deflationary cryptocurrency, while XLM is an inflationary cryptocurrency. XRP has increased its financing, which is to be anticipated given that it is aimed at banks and capital holders.

We begin the technical section of the Stellar Vs Ripple debate by noting that their algorithms vary. For XLM, XRP utilizes proof of correctness and a single consensus. Ripple’s XRP is more centralized than Stellar’s XLM, although they are both decentralized by definition. It’s worth noting that both strive to keep transaction costs low and transactions moving quickly.

So far, it has been a success, with XLM being accepted by major exchanges and agreeing with the fundamental idea of cryptocurrencies. The idea says that cryptocurrencies are intended to offer access to financial services to the unbanked or underbanked. XLM is also more decentralized than XRP, which is another reason to ride the wave.

There’s no reason to think the two businesses can’t coexist. Ripple has a number of high-profile partners, including major banks and financial organizations like Bank of America. Stellar collaborations, on the other hand, are primarily focused on their technology rather than as a service (Remember it started as a non-profit venture). As a consequence, Stellar’s collaborations with IBM and Deloitte are among the most noteworthy, demonstrating the company’s continuous progress.

Is this to say that Stellar Lumens will be spared? When we look at a Stellar price chart, such as the one above, we can observe that their market volume and development are comparable to those of other major cryptocurrencies. As a result, we may presume that Stellar is in it for the long haul, but cryptocurrencies are volatile, and the technology and industry are still in their infancy.


Conclusion: Stellar vs. Ripple

Ripple (XRP) and Stellar Lumens (XLM) have a number of similarities, however their target audiences are different. Ripple has high-profile partners, while Stellar seems to be a non-profit technology aimed at the unbanked and underbanked.

To run and protect its blockchain, Stellar Lumens does not utilize (PoW) Proof of Work or (PoS) Proof of Stake. It operates on the basis of a Byzantine agreement mechanism. The inflationary currency under the system has a set annual rise rate of 1%.

Every node runs the Ripple Protocol consensus algorithm (RPCA) every few seconds. This is done to ensure that the network remains accurate and orderly. When agreement is reached, the ledger is deemed “closed” and the most recent. The algorithm is usually successful, and the next round begins. A fork might occur otherwise, although this is extremely improbable.

It’s difficult to make precise Stellar forecasts, as it is with any other cryptocurrency in circulation. The cryptocurrency market’s expansion seems unstoppable, and Stellar has a few characteristics that make it a strong long-term investment option.

  • One of Ripple’s creators, Jed McCaleb, leads an outstanding team.
  • A tried-and-true product.
  • Wirex, Stripe, Microsoft, and IBM are examples of good collaborations and integrations.

When compared to Bitcoin, the present price seems to be cheap, therefore now may be a good time to invest.

Ripple and Stellar both have similar benefits, however it’s worth noting that Ripple has a far higher capital investment owing to its high-profile collaborations and target audience. Due to its collaborations with prominent personalities, Ripple was all over the headlines in 2018, causing XRP prices to skyrocket. 

So, which one is it? It’s difficult to say, and unfortunately, our crystal ball isn’t providing us with a clear picture. But, given everything we’ve looked at so far, it’s not unreasonable to conclude that both assets are attractive as potential investments.

Because they have distinct objectives, the Stellar Vs Ripple fight seems to have finished in a technical draw. Yes, they are similar, but they are both based on a successful model, which isn’t always a negative thing. Both are promising, long-term, and have a strong foundation.

As usual, always invest what you can afford to lose and do your homework.

The Stellar VS Ripple debate is a popular topic among cryptocurrency enthusiasts. There are many opinions on which network is better, but the stellar vs ripple reddit has some interesting discussion points.

Frequently Asked Questions

Is Stellar a Shitcoin?


Does Xlm follow XRP?

Xlm does not follow XRP.

Are Xlm and XRP the same?

No, Xlm is the ticker symbol for Stellar Lumens while XRP is the ticker symbol for Ripple.

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